Human Resource Management (HRM) Framework and …

1 Human Resource Management (HRM) Framework and Handbook for SAIs 2019 Human Resource Management (HRM) Framework and Handbook for SAIs A Practical Approach to HR Management for HR Practitioners, Corporate Service Directors and Managers in the SAI Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 11 CONTENTS A. LIST OF ABBREVIATIONS .. 12 B. PREAMBLE .. 13 C. PURPOSE OF THE HANDBOOK .. 13 D. PURPOSE OF THE HRM STRATEGIC Framework AND ITS PLACE IN THE SAI .. 14 E. Human Resource Management STRATEGIC Framework .. 15 1. HR STRATEGY .. 16 PLANNING .. 26 3. ATTRACTION, COMPETENCY-BASED RECRUITMENT AND INDUCTION .. 35 Management .. 44 AND RECOGNITION .. 55 AND DEVELOPMENT .. 62 DEVELOPMENT .. 74 8. STAFF WELLNESS .. 82 AND SUCCESSION .. 89 EXIT .. 97 G. BIBLIOGRAPHY .. 101 Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 12 A. List of Abbreviations ACCA Association of Chartered Certified Accountants AFROSAI-E African Organisation of English-speaking Supreme Audit Institutions AG Auditor-General CIPFA Chartered Institute of Public Finance and Accountancy CPD Continuing professional development CPE Continuing professional education DAG Deputy Auditor-General FA Financial audit HR Human resources HRM Human Resource Management ICBF Institutional Capacity Building Framework ICPA Institute of Certified Practising Accountants ICF Integrated Competency Framework IDI INTOSAI Development Initiative IFMIS Integrated Financial Management Information System IRMQ Individual, relationship.

2 Motivational and quality competencies INTOSAI International Organisation of Supreme Audit Institutions ISSAI International Standards of Supreme Audit Institutions OAG Office of the Auditor-General PA Performance audit PDP Personal Development Plan PM Performance Management PSC Public Service Commission ROI Return on investment RACI Responsible, accountable, consulted, informed SAI Supreme Audit Institution SAI-PMF Supreme Audit Institution Performance Measurement Framework Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 13 B. Preamble Supreme Audit Institutions (SAIs) provide the highest level of audit assurance to public sector entities in a country. Managing a SAI s Human resources (HR) in an efficient way is critical and must be done in accordance with international standards as well as national and international best practices. The implementation of the Human Resource Management Framework and HR Handbook will enable SAIs to attract, motivate, develop and retain highly skilled audit and other professionals, create a culture of performance and integrity and ultimately reach level 3 and beyond of the Institutional Capacity Building Framework (ICBF).

3 The INTOSAI Lima Declaration of Guidelines on Auditing (ISSAI 1) and ISSAI 100 sets out the Fundamental Principles of Public Sector Auditing. To fulfil these objectives, the SAI must strive to develop an HR strategy aligned to its strategic objectives to employ, motivate, develop and retain its staff in a sustainable way. Enough effort should also be undertaken to develop and sustain professional knowledge and skills in order to build a culture of performance. The Code of Ethics (ISSAI 30) establishes the fundamental values and principles that should guide the values and behaviour of staff in the SAIs. ISSAI 40 deals with quality control and in the chapter on Training and Development this handbook specifically addresses the issue of competence and professional development for auditors. To ensure a qualitative application of the principles stated under Element 4, HR must be managed in a strategic and coherent way. C. Purpose of the Handbook This handbook aims to assist the SAI in implementing an HRM function based on the Human Resource Management Strategic Framework and AFROSAI-E s Integrated Competency Framework .

4 The intention is to build a solid foundation for professionalisation of the HR function and allow for customisation of current HR practices in the SAI. It also provides standards of best practice and practical examples from SAIs in the AFROSAI-E region. In February 2017 AFROSAI-E embarked on a journey to expand the existing INTOSAI Competency Framework to: define competencies for all the roles in the SAI (Compliance, Financial, Performance, Specialised Audit and Support Services roles); define functional knowledge and functional skills for all the roles; cluster the audit competencies according to the audit flow process; include behavioural competencies required for appropriate work behaviour in SAIs; and define and incorporate leadership competencies The following activities enhanced the process of designing the Integrated Competency Framework for SAIs. Defining the strategic links between the audit function and SAIs statutory objectives, values, and strategic plans Identification of sophisticated technical, business, behavioural and leadership competencies required for SAIs to operate effectively in the fast-changing public-sector landscape Researching the legal basis of the audit function Evaluating compliance of the audit function with government policy Establishing alignment with ISSAI Standards Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 14 Assessing the audit flow process Determining the competencies required for the effective operations of support services in the SAI As the aim was to create a Framework for an entire SAI, the team used a sample of roles from across the SAI, ensuring the capturing of the widest range of competencies that are relevant.

5 Competencies for the following roles were captured: Compliance Audit Financial Audit Performance Audit Specialised Audit o IT, Forensic, Environmental Audit Other Professional areas o Communication o Human Resources o Finance o IT Support o Procurement o Legal The Integrated Competency Framework has applications across the whole range of Human Resource Management and development activities. It is an essential vehicle for achieving high organisational performance through focusing and reviewing staff s capability and potential. It became necessary to review the current HR Handbook and to align it to the Integrated Competency Framework for SAIs. The HR Handbook now also clarifies how the Integrated Competency Framework for SAIs can be implemented in the various HR areas. The handbook will be updated on a continual basis as the function develops. Due to the differences between countries, a selection has been made to cover the areas from which most SAIs can benefit. Thus, certain crucial HR areas like compensation and benefits are very briefly covered.

6 The aim is to assist HR practitioners to put theory into practice and develop the SAI by enriching the HRM practices further. D. Purpose of the HRM Strategic Framework and its place in the SAI The HRM Strategic Framework : defines the HR initiatives that will enable the SAI to attract, motivate, develop and retain highly skilled audit and other professionals enables the development and implementation of HR practices in SAIs is a comprehensive guideline designed to assist managers, HR practitioners and staff better to understand, address and manage issues relating to Human resources in the SAIs. Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 15 E. Human Resource Management Strategic Framework The HRM Strategic Framework is based on the Employee Life Cycle (Yeowell, 2011) which depicts the phases staff go through during their time in the SAI and defines the HR strategies/policies to be implemented related to each of the phases.

7 The handbook will cover the following per the HRM Strategic Framework : HR Strategy HR Planning Attraction, Recruitment and Induction Performance Management Reward and Recognition Training and Development Leadership Development Staff Wellness Succession and Retention Exit Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 16 Strategy Why a HR strategy? An HR strategy is aimed at integrating the SAI s culture, its staff members and processes by coordinating a set of actions to reach the required organisational strategic focus areas of the SAI. Therefore, the HR strategy must be aligned to the SAI s vision, mission, values and strategic focus areas to ensure viability and sustainability of the SAI. What is a HR strategy? In the SAI, the HR strategy supports the implementation of the SAI s strategies through HR activities such as HR planning, attraction and recruitment, reward and recognition, performance Management , training and development, retention and succession and staff wellness.

8 Ideally the HR strategy should be aligned to the SAI s strategic goals and objectives. The HR strategy is an action plan to increase staff productivity and identify key HR areas where strategies can be implemented in realising the SAI s strategic intent. The HR strategy also enables a solid relationship and strategic partnership between HR and the strategic Management of the SAI. What is a HR Policy? Different from the HR Strategy, HR Policy defines the rules and regulations of the SAIs internal HR processes in line with the respective countries constitutions and the Service Commissions Act. A HR Policy usually include the following: Terms of employment Remuneration Benefits Hours of work Dispute resolution Nondisclosure agreements Grounds for termination How to develop and implement an HR strategy in the SAI The HR strategy should be aligned to the vision, mission, values and strategic focus areas of the SAI. The following is an example of a SAI s vision, mission, values and strategic focus areas.

9 HR Strategy criteria/considerations: HR Strategy is aligned to the SAI Strategy Defined HR Vision Defined HR Strategic Goals Defined HR Plans for all areas in the employee life cycle Defined appropriate B-strategies Defined HR metrics Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 17 Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 18 How to build the HR strategy B-strategies (Ulrich, 2003) The B-strategies essentially refer to the strategic choices SAIs can make with regard to HR Management . The requirements, challenges and risks of each of the B-strategies are discussed in detail below. a. Buy: Recruiting staff members from outside the SAI Link to the HRM Framework : Recruitment Requirements: The ability to identify, attract and secure the best candidate from the external market Challenges: Difficulty in finding individuals in the external market who have the specialised skills needed for the SAI.

10 Cost of recruitment Risks: Staff members may resign within a short period for career progression opportunities b. Build: Developing talent within the SAI Link to the HRM Framework : Training and Development, Leadership Development, Succession Requirements: Development opportunities/initiatives to increase skills and capabilities of SAI staff Challenges: Securing the investment/funds needed for training and development initiatives Risks: Long lead time until staff members are fully proficient and productive c. Borrow: Obtaining staff through consulting, outsourcing or contracting Link to the HRM Framework : HR Planning Requirements: A trusted network of partners and an assessment of which skills should be borrowed Challenges: Effectively managing projects and assignments of contractors or consultants. High cost of consulting services, sustainability Risks: Becoming too dependent on consultants or contractors Human Resource Management (HRM) Framework AND HANDBOOK FOR SAIs 19 d.